The KTM AG business and economic soap opera returns with a new and unwanted chapter, although this is nothing more than the result of the reality that the orange brand crosses since the end of last year. Apparently, as some international media claim, Bajaj Auto would be behind the credit operation that will grant the Austrian company a loan without guarantee of 566 million euros Thanks to the financing obtained by JP Morgan, DBS and Citigroup.
This amount would be destined to resume the commercial operations of KTM AG and settle the debt acquired by the brand last February. Then KTM’s financial situation took a positive turn after the approval of his restructuring plan by creditors in Austria. As part of the agreement, the company had to deposit 548 million euros in a regional court, an amount that would have to be returned Before May 23, 2025.
KTM AG could change hands
It is clear that from Bajaj Auto (despite not having confirmed that the requested loan is aimed at solving the financial proves of KTM AG), it has all the letters to take control of the European company. We must remember that the Indian group has been linked to KTM AG since 2007, at which time it took 14.5 % of the brand’s actions. However, this participation has been growing over time.
As of 2021 this amount reached almost 50% of the total PTW Holding AG, the business group responsible for managing KTM, Husqvarna and gas through Piere Mobility AG. This fact may change radically in the coming weeks, after the last loan of Bajaj Auto to the poor KTM AG accounts.
At the same time, as reported by Ride Apart, the current KTM bankruptcy administrator is still looking for financing to keep the business group afloat. Citigroup Global Markets Europe AG Try to raise another 800 million additional euros of external investors. At this point we have a third actor within this whole story, BMW Group.
Some sources suggest that the German automotive giant could be “pulling the cane“ With the intention of getting part of KTM AG. Although BMW’s directive dome have not ruled in this regard, it is another possibilities that could be inside the hype. In any case already reason for this matter, the own Rajiv Bajaj He spoke clearly about the KTM situation and how his company will proceed in this regard:
“It’s not something we want to let go easily … but we need to find a very sustainable solution for the future.” Hopefully they find it soon, for the good of the brand, but especially for the short and medium term stability of the thousands of people who, directly or indirectly, are linked to the future of the Austrian firm.
